The cost of buying a house with a mortgage in England and Wales is now more expensive than the cost of renting it, a report shows.
In 2006, the cost of renting was two-thirds the cost of a 100 per cent mortgage on a two- or three-bedroom property, according to market analysts Hometrack.
The impact of the buy-to-let phenomenon on the UK housing market is the main reason why private rents have become cheaper in recent years, the report said.
The study was carried out for Hometrack by University of York Professor Steve Wilcox.
He said: "Not too long ago, there was little difference between the costs of buying and renting
"But while house prices tripled in the years since 1994, private sector rents only increased in line with earnings and the costs of renting have as a result fallen relative to the costs of buying."
David Salusbury, chairman of the National Landlords Association, added: "The National Landlords Association has consistently championed the private rented sector as providing good quality, affordable housing for a wide cross-section of society, and we are pleased to find support coming from this independent research
"People in the UK have been lulled into thinking they must buy their own home. But the key to property ownership has always been hard work and careful financial planning. For those who are unable to afford to buy, renting offers a good value alternative.
"There should be no stigma attached to renting, especially as the standard of homes in the sector has steadily risen over the years."
The study also found that the average house is now worth more than five times the average income of a first-time buyer.
Hometrack's figures show that the average cost of a property in England and Wales is a whopping £176,300.
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